Hi,
We have an IVA, which is due to finish in August 2014.
How late can our IVA company decide to extend it by another year?
I'm confused as we received a letter in Sept 2012 advising there was an extension of our arrangements.
It stated that the voluntary arrangement was to be extended by 6 months to allow for realisation of assets to be finalised, for final admin & final dividend to be issued.
When I called they advised we would make our last payment in August 2014, but had applied the extension to be able to finalise our account.
Now they are saying that they need to send us documents to see what our property status is & they may extend the IVA by a further year.
Please could someone advise me here?
Thanks Karen.
Hi and welcome to the forum. Bit above me to answer I'm afraid but I will keep this bumped up for another to answer. Hang in there it won't be long before you get a reply.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi -- the initial 6 months extension is the customary admin period after your last payment, so that they can tie everything up. This is usually written in to the proposal -- but seems to have been missed from yours.
Equity has to be investigated ( usually) in month 54 and the relevant details will be in your paperwork under "Equity". If there is equity, it should be released or an extension applied. If no equity there should be no extension.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I know we have no equity as we went into negative equity when the recession hit & have been on interest only since. We've been told it's likely that because of that we will be extended, but your reply doesn't suggest this??
You should have had the remortgage element explained when you first considered an IVA. In general if there is more than 5k of equity based on 85% loan to value less your existing mortgage you may have to extend your IVA by 12 months. If there is less than 5k or no equity then you should not have to extend
Ask you IP to clearly explain your obligations
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Andy Davie
Hi and welcome
You should have had the remortgage element explained when you first considered an IVA. In general if there is more than 5k of equity based on 85% loan to value less your existing mortgage you may have to extend your IVA by 12 months. If there is less than 5k or no equity then you should not have to extend
Ask you IP to clearly explain your obligations
Regards
Hi Andy,
I've re-read our paperwork & it states in one paragraph that if we cannot remortgage our term will be extended, but in another paragraph states if equity is less than £5k then the iva will not be extended.
We seem to get different answers when we call so I guess will just need to wait for the paperwork they are supposed to be sending us.
Thanks Karen.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy
It should read (in plain language) as follows:
At month 54 you need to seek a valuation to establish what equity, if any, is available.
If equity is over £5k you need to seek to remortgage, Failure to remortgage will result in an extension of 12 months in lieu.
If equity is under £5k there is no requirment to release and no extension.
Hi Foggy,
It says 3.5) Six months prior to the expiry of my IVA I will attempt to release the equity in home by way of a re-mortgage (this will normally be after month 54, unless my IVA has been extended for any reason). However, if I am unable to obtain a remortgage for any reason my IVA may instead be extended by up to 12 months.
3.9) If the amount of equity available in the home at month 54 is under £5,000, it is deminimis, and does not have to be released, and there will be no adjustment to the IVA term.
So this is why I'm confused as they seem to contradict each other?
Karen.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy
It should read (in plain language) as follows:
At month 54 you need to seek a valuation to establish what equity, if any, is available.
If equity is over £5k you need to seek to remortgage, Failure to remortgage will result in an extension of 12 months in lieu.
If equity is under £5k there is no requirment to release and no extension.
Hi Foggy,
The 5k is that literally 5k equity or is that 5k over 15%?
In point 3.7 it states the maximum remortgage will be of 85% loan to value.
Point 3.9 states if equity is under £5k then it does not need to be released
Just trying to prepare ourselves. Mortgage is currently 103% ltv, but could have approx £5k (just) equity depending on next weeks valuation.
Hi Karen. We have just had a post regarding the IP calculating equity for the deminimis amount, where the IP insisted on using 100% LTV for deminimis. However, once the relevant protocol was pointed out to him, he agreed to use 85%.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
